Consolidated Financial Results for the First Quarter of Fiscal Year Company name: DISCO Corporation Stock code number: 6146 (Tokyo Stock Exchange 1st Section) URL: http://www.disco.co.jp Telephone number: 81-3-4590-1099 July 26, Notes: 1. The accompanying financial statements have been prepared in accordance with accounting principles and practices generally accepted in Japan. 2. Amounts are rounded down to the nearest million yen. 1. Consolidated Results of FY 1Q(April 1, through June 30, ) 1) Operating results (Accumulated) Three months ended June 30, 2017 June 30, YoY(%) Net sales 44,414 40,353 (9.1) Operating income 15,107 11,441 (24.3) Ordinary income 14,929 11,337 (24.1) Net income 10,672 8,318 (22.1) Net income per share (yen) 297.55 231.56-2. Dividends 2) Financial position Total assets Net assets Equity ratio (%) (Reference) Equity (defined as shareholders' equity plus valuation and translation adjustments) : 203,193 million yen (as of June 30, ) 204,254 million yen (as of March 31, ) 1Q-end dividend per share (yen) (yen) Fiscal Year Forecast 2Q-end dividend per share (yen) 141.00 108.00 3Q-end dividend per share (yen) Year-end dividend per share (yen) 248.00 Annual dividend per share (yen) 389.00 Note: Revision of dividends forecast for during this period: Yes As of As of March 31, June 30, 256,347 247,236 Fiscal Year 2017 205,264 204,258 79.7% 82.2% Fiscal Year Actual
3. Earnings Forecasts of FY 1H 4. Others Six month ending YoY (%) September 30, Net sales 78,600 (9.2) Operating income 21,500 (25.6) Ordinary income 21,500 (24.8) Net income 15,500 (23.1) Net income per share (yen) 431.48 Note: Revision of earnings forecast for during this period: Yes 1) Important changes in subsidiaries: None 2) Changes in principles, procedures and display of accounting method concerning consolidated statement policies. 1. Changes in accounting policies along with changes in accounting standards: None 2. Other changes: None 3) Number of shares outstanding (common stock) 1 Number of shares issued (include treasury stocks) As of June 30, : 35,928,071 shares As of March 31, : 35,927,471 shares 2 Number of shares of treasury stock As of June 30, : 4,823 shares As of March 31, : 4,823 shares 3 Average number of shares As of June 30, : 35,922,849 shares As of June 30, 2017: 35,866,675 shares Explanations on the appropriate use of earnings forecasts: The performance forecasts and estimates stated in this Financial Review are based on certain assumptions judged to be reasonable at the present time in light of information currently available. Consequently, actual operating results may differ substantially from the projections in the Financial Review. (Reference) Non-consolidated Earnings Forecasts of FY 1H Six month ending YoY (%) September 30, Net sales 66,800 (8.9) Operating income 16,100 (25.2) Ordinary income 26,600 14.1 Net income 21,800 30.1 Net income per share (yen) 606.85 - Note: Revision of earnings forecast for during this period: Yes
5. Consolidated quarterly balance sheets As of March 31, As of June 30, Assets Current assets Cash and deposits 91,574 83,274 Notes and accounts receivable - trade 43,647 44,581 Merchandise and finished goods 7,093 7,264 Work in process 9,656 9,886 Raw materials and supplies 16,943 18,831 Other 5,809 2,536 Allowance for doubtful accounts (52) (50) Total current assets 174,673 166,323 Non-current assets Property, plant and equipment Buildings and structures, net 33,129 32,778 Other, net 36,135 37,301 Total property, plant and equipment 69,264 70,079 Intangible assets 511 468 Investments and other assets Other 11,921 10,389 Allowance for doubtful accounts (23) (24) Total investments and other assets 11,897 10,364 Total non-current assets 81,673 80,912 Total assets 256,347 247,236
As of March 31, As of June 30, Liabilities Current liabilities Notes and accounts payable - trade 6,286 4,998 Electronically recorded obligations - operating 14,230 17,554 Income taxes payable 10,209 2,790 Provision for bonuses 8,651 7,076 Other provision 646 707 Other 10,280 9,057 Total current liabilities 50,306 42,184 Non-current liabilities 776 793 Total liabilities 51,082 42,978 Net assets Shareholders' equity Capital stock 20,651 20,653 Capital surplus 22,639 22,641 Retained earnings 157,919 157,328 Treasury shares (25) (25) Total shareholders' equity 201,184 200,598 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,498 1,034 Foreign currency translation adjustment 1,619 1,603 Remeasurements of defined benefit plans (47) (42) Total accumulated other comprehensive income 3,070 2,595 Share acquisition rights 899 934 Non-controlling interests 110 129 Total net assets 205,264 204,258 Total liabilities and net assets 256,347 247,236
6. Consolidated quarterly statements of (comprehensive) income Three months ended Three months ended 30-Jun-17 30-Jun-18 Net sales 44,414 40,353 Cost of sales 18,271 17,083 Gross profit 26,142 23,269 Selling, general and administrative expenses 11,035 11,828 Operating profit 15,107 11,441 Non-operating income Interest income 12 15 Share of profit of entities accounted for using equity method 72 96 Rent income 18 17 Other 37 65 Total non-operating income 140 195 Non-operating expenses Interest expenses 10 0 Sales discounts 13 12 Foreign exchange losses 274 280 Depreciation 12 2 Other 6 3 Total non-operating expenses 317 299 Ordinary profit 14,929 11,337 Extraordinary income Gain on sales of non-current assets 12 13 Insurance income 72 - Total extraordinary income 85 13 Extraordinary losses Loss on sales and retirement of non-current assets 5 3 Loss on valuation of investment securities 0 0 Special retirement expenses 3 14 Total extraordinary losses 9 18 Profit before income taxes 15,005 11,332 Income taxes - current 3,251 2,185 Income taxes - deferred 1,069 807 Total income taxes 4,320 2,993 Profit 10,685 8,338 Profit attributable to Profit attributable to owners of parent 10,672 8,318 Profit attributable to non-controlling interests 12 20 Other comprehensive income Foreign currency translation adjustment 406 111 Remeasurements of defined benefit plans, net of tax 1 4 Share of other comprehensive income of entities accounted for using equity method 57 (592) Total other comprehensive income 465 (475) Comprehensive income 11,150 7,862 Comprehensive income attributable to Comprehensive income attributable to owners of parent 11,138 7,843 Comprehensive income attributable to non-controlling interests 12 19